78R5753 YDB-D

By:  Homer                                                        H.B. No. 1241



A BILL TO BE ENTITLED

AN ACT

relating to insurance for lottery sales agents and lottery vendors 
to cover the theft or loss of certain lottery tickets and other 
items.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 466, Government Code, is 
amended by adding Section 466.026 to read as follows:
	Sec. 466.026.  INSURANCE.  (a)  The commission shall provide 
a sales agent or lottery vendor who contracts with the commission to 
produce, store, distribute, transport, or sell lottery tickets with 
the option of purchasing insurance through the commission to cover 
the theft or other loss of scratch-off or other instant-win 
tickets.
	(b)  The commission may apply the insurance coverage to other 
lottery tickets, supplies, or equipment as the commission 
determines appropriate.
	(c)  The commission may purchase insurance from an insurance 
company or provide insurance through a self-insured program in 
accordance with commission rule.
	(d)  The commission may:                                                
		(1)  include the cost of the insurance in the amount 
charged per bundle or other bulk amount of tickets in the possession 
of a sales agent or lottery vendor; or
		(2)  charge an annual fee to a sales agent or a lottery 
vendor in an amount necessary to cover the cost of purchasing or 
providing insurance and based on the average yearly volume of 
tickets in the possession of the agent or vendor.
	(e)  The commission may require a sales agent or lottery 
vendor to purchase insurance provided under this section for a term 
of up to one year, subject to optional renewal for a new term at the 
end of each term.
	SECTION 2.  Not later than March 1, 2004, the Texas Lottery 
Commission shall adopt the rules and procedures necessary to 
purchase or provide insurance coverage under Section 466.026, 
Government Code, as added by this Act.
	SECTION 3.  This Act takes effect September 1, 2003.